Experts Predict Bitcoin Will Boom Again in 2019

Siobhan Conner |

1 month

0

Views | 5162

Bitcoin (BTC) is set to reassert its dominance over the cryptocurrency market in 2019 according to a recent report by management consultancy firm A.T. Kearney. Reviewing the leading digital token’s recent performance, analysts believe the price of Bitcoin will rally as the new year dawns. Fueling the recent wave of optimism, according to the report, are two factors.

“By the end of 2019, Bitcoin will reclaim nearly two-thirds of the crypto-market capitalization as altcoins lose their luster because of growing risk aversion among cryptocurrency investors,” it reads.

Regulatory Change Could Buoy Bitcoin

As well as growing apathy towards altcoins, analysts believe more people will buy Bitcoin in 2019 because of changing attitudes among financial regulators. In 2018, the regulatory landscape has proved a tricky one to navigate for the leading cryptos. Ripple and the American Securities & Exchange Commission (SEC) have been embroiled in a back-and-forth debate over the status of XRP. Although the former is a separate entity to the digital coin, it does have a controlling share of XRP. Based on this, some have suggested XRP is security and should, therefore, abide by established financial regulations.

Although an official decision hasn’t been made at the time of writing, it’s expected that SEC will rule that XRP isn’t a security. However, the saga has showed that clear financial regulations are needed if cryptocurrencies are going to become mainstream products. According to A.T. Kearney, financial regulators are expected to soften their stance towards the industry by the close of 2019. For Bitcoin, this would allow it to forge new relationships with governments, banks and major corporations. Indeed, as researchers at Imperial College London have stated, regulation is one of six “tests” any crypto needs to pass if it’s going to replace fiat currencies.

Stability Continues to Offer BTC a Lifeline

BTC price charts have remained more stable than altcoins in 2018.

While global regulation is unlikely to happen in 2019, the winds of change have started to blow. What’s more, the relative stability is likely to keep investors interested moving into the new year. Following a crash at the start of 2018, few coins managed to establish a base in the proceeding month. Although the price of BTC took a significant hit during the market downturn, the dollar value remained relatively stable during the second and third quarters of 2018. In contrast, Ethereum (ETH) has lost its place as the second most valuable coin by market cap. Despite remaining strong in the early part of the year, network congestion and scaling issues have seen it slip to third behind XRP in December.

Between the continued volatility of competing cryptos and the potential for regulatory change in the coming months, experts are confident that Bitcoin will see a price spike before the end of 2019. Could that possibly mean the crypto will breach the $20,000 mark? Perhaps not. However, investors old and new can certainly take solace in stability moving forward.

Even though the token is worth less than it was at the close of 2017, the bearish market hasn’t savaged its fortunes as much as some altcoins. With that being the case, there is certainly some merit to the assumption that Bitcoin will reassert its dominance in 2019.

NAVIGATION

CATEGORIES

THE INDEPENDENT REPUBLIC

The Independent Republic is a cryptocurrency hub focused on all the top altcoins such as Ripple (XRP) Litecoin (LTC) iota (MIOTA) Verge (XVG) Bitcoin (BTC) Ethereum (ETH) and many more.

TIR has quickly become a trusted source for cyrptocurrency news and anything related to crypto and is known for delivering insightful, informational and authoritative stories online about the fast-paced and rapidly evolving world of CryptoCurrencies

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.